A Massachusetts seller conveys property to Buyer 1, who does not record. The seller then conveys the same property to Buyer 2, who has no notice of Buyer 1's interest. Buyer 2 also fails to record. Which of the following best describes the outcome under Massachusetts recording law?
Correct Answer
A) Buyer 1 prevails, because the first conveyance in time takes priority when neither party records
Under Massachusetts's race-notice statute (MGL Chapter 183), when neither Buyer 1 nor Buyer 2 records, neither can claim the benefit of the recording act. The recording act only protects a subsequent purchaser who satisfies BOTH conditions: recording first AND taking without notice. Since Buyer 2 never recorded, Buyer 2 cannot win the 'race' element. Without the protection of the recording act, the common law rule of 'first in time, first in right' applies, and Buyer 1 prevails as the first grantee.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Tenancy by the entirety is a form of co-ownership available only to married couples that includes the right of survivorship and protection from individual creditors. Neither spouse can unilaterally sell or encumber the property.
Tenancy in common is a form of co-ownership in which two or more persons hold separate, undivided interests in property without the right of survivorship. Each owner can hold unequal shares and can independently transfer their interest.
A freehold estate conveys ownership rights, while a leasehold estate grants the right to possess and use property for a specific period without ownership.
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